Income Tax Assessment Act 1997
The capital proceeds from a *CGT event are the total of:
(a) the money you have received, or are entitled to receive, in respect of the event happening; and
(b) the *market value of any other property you have received, or are entitled to receive, in respect of the event happening (worked out as at the time of the event).
The timing rules for each event are in Division 104 .
In some situations you are treated as having received money or other property, or being entitled to receive it: see section 103-10 .
If you dispose of shares in a buy-back, the capital proceeds are worked out under Division 16K of the Income Tax Assessment Act 1936 .116-20(2)
This table sets out what the capital proceeds from *CGT events F1, F2, H2 and K9 are:
|General rules about capital proceeds|
|Event number||Description of event:||The capital proceeds are:|
|F1||Granting, renewing or extending a lease||Any premium paid or payable to you for the grant, renewal or extension|
|F2||Granting, renewing or extending a long-term lease||The greatest of:|
|(a)||the *market value of the estate in fee simple or head lease (worked out when you grant, renew or extend the lease); and|
|(b)||what would have been that market value if you had not granted, renewed or extended the lease; and|
|(c)||any premium paid or payable to you for the grant, renewal or extension|
|H2||Receipt for event relating to a CGT asset||The money or other consideration you received, or are entitled to receive, because of the act, transaction or event|
|K9||Entitlement to receive payment of a *carried interest||The amount of the payment, to the extent that it is a payment of the *carried interest|
In working out the *market value of the property the subject of the grant, renewal or extension of a long-term lease:
(a) include the market value of any building, part of a building, structure or improvement that is treated as a separate *CGT asset from the property; and
(b) disregard any *depreciating assets for whose decline in value the lessor has deducted or can deduct an amount under this Act.
Subdivision 108-D sets out when a building, structure or improvement is treated as a separate CGT asset.
In working out the amount of any premium paid or payable to the lessor for the grant, renewal or extension of a long-term lease, disregard any part of it that is attributable to a *depreciating asset of that kind.
The payment of any premium can include giving property: see section 103-5 .
In working out the proceeds of a *CGT event that is a *supply, disregard the amount of your *net GST (if any) on the supply.